Author Name: Fan Wong– Marketing Analyst at FreightAmigo｜29/9/2022
For e-commerce, the shipping process is the closest link to customers in the entire supply chain: the process of sending goods from the warehouse to customers. When both efficiency and quality are high, the customer will have a better experience during consumption and be more inclined to trust the brand. Therefore, all major e-commerce companies have accelerated the delivery time, hoping to stand out in the highly competitive e-commerce market.
What are the shipping channels?
At present, online stores have different shipping modes. Except for a few very large companies that have their own logistics fleets, most online stores’ shipping methods include home distribution shipping, convenient stores logistics, shopping website shipping and third-party logistics shipping.
Homestead distribution shipment: the steps include printing the logistics bill, sorting out the commodity packages, and waiting for the logistics company to pick up the goods and send them to customers.
Shipping with convenience stores: cooperation with logistics service of convenient stores is required, such as 7-11 Logistics Dazhitong. The steps are to take the commodity package to the supermarket first, and then obtain the logistics bill, and then send it to the customer.
Shipping by online shopping platform: deliver a large number of goods to the storage center (i.e. warehouse) of the shopping website in advance and pay the storage fee. Wait until the customer places an order and then send the goods directly to the shopping website’s logistics system.
Third-party logistics shipment: entrust the goods to the third-party logistics company for sorting and shipment, i.e., logistics outsourcing.
For e-commerce, there are a large number of online store orders, but the number of goods in each order is small, and even individual goods are taken as a unit. Traditional logistics naturally raise concerns about the efficiency and cost of online store shipping. As shown above, regardless of home distribution shipment and supermarket shipment, you must confirm the delivery order of each shipment by yourself, and supermarket shipment requires you to load goods by yourself, which is extremely time-consuming and labor-intensive. Although the shopping website is prepared for shipping, which helps to improve efficiency, there are many restrictions: for example, the brand logo cannot be placed on the outer package, and some goods cannot be posted, which restricts the development of e-commerce business. Although third-party logistics can help online stores handle most of the follow-up logistics activities, e-commerce still needs to submit a large number of paper documents, and the time cost is not small.
Just as e-commerce has emerged in the retail industry, will the logistics industry also become digitalized, and thus simplifying the shipping mode?
The answer is yes.
Digitalized logistics platform emerging in recent years.
The emergence of digitalized logistics platform in recent years
1. Convenient and fast
Some emerging digitalized logistics platforms have begun to use logistics technology (FreighTech), which is different from the centralized transportation of traditional logistics companies. With big data analysis, you can get different logistics quotations and insurance quotations free of charge by placing an order with one click, eliminating the tedious process of back and forth e-mail/telephone inquiries, greatly reducing the waiting time for e-commerce, and greatly saving the cost of logistics quotation search. Then just wait for the door-to-door delivery.
2. Low cost
Whether sent from overseas or Hong Kong, the digitalized logistics platform can suggest the cheapest route through AI, making the average freight cheaper than the traditional shipping mode.
3. Safe and stable
Unlike traditional shipping, which is affected by sudden events, such as port strikes and extreme weather, the digitalized logistics platform adopts logistics technologies such as AI routing and big data analysis to automatically select the optimal route. Consumers do not have to worry about the delay in receiving goods. Not late, only early.
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